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Sandwich Ltd prepares meals for sale 24 hours a day. Fixed cost for the restaurant is $450000 per year. On average the sales check per
Sandwich Ltd prepares meals for sale 24 hours a day. Fixed cost for the restaurant is $450000 per year. On average the sales check per customer is $8.00. The average cost of food and other variable costs is $3.20 per customer. The income tax rate is 30%. Target net income is $105000. a) What revenues are needed to earn the target net income? (7 marks) b) How many customers are needed to breakeven? To earn net income of $105000? (10 marks e) What is the net income if the number of customers is 150000 (8 marks)
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